LAW

ON TRANSFER OF IMMOVABLE PROPERTY

("Off. Herald of RS", Nos. 93/2014, 121/2014 and 6/2015)

 

I BASIC PROVISIONS

Article 1

Transfer of immovable property shall be free, unless otherwise provided by law.

Immovable property, within the meaning of this Law, shall be: land (agricultural, building land, forests and forest land), buildings (business, residential, residential and business buildings, commercial buildings, and the like) and other construction facilities, as well as separate parts of buildings (apartments, business premises, garages and garage parking places) where a separate ownership right may exist (hereinafter: immovable property).

Article 2

Transfer of immovable property, within the meaning of this Law, shall be the transfer of the ownership right to immovable property by a legal transaction, with or without compensation.

Transfer of the right to use immovable property in public ownership from one holder of the right to use immovable property in public ownership to another shall also be considered the transfer of immovable property.

Article 3

Transfer of the ownership right to a building, i.e. another construction facility, shall imply a simultaneous transfer of the ownership right to the land on which the building is located, as well as to the land which serves the building’s regular use.

The land which serves the building’s regular use shall be defined in an immovable property transfer agreement, and if this is not agreed upon, the rules envisaged in the regulations on planning and construction defining the land that serves the building’s regular use shall be applied.

Transfer of the ownership right to the building constructed on the land to which the building owner does not have an ownership right, but has solely the right of use or the right of lease, shall imply the transfer of the right of use or the right of lease on the land on which the building is located, as well as on the land which serves the building’s regular use.

Article 4

An immovable property transfer agreement shall be concluded in the form of a notary public verified (solemnized) document.

A notary public in the territory of whom the immovable property that is the subject of the agreement is located shall be held solely competent for the work referred to in paragraph 1 of this Article.

If the immovable properties that are the subject of the agreement are located in the territory of a number of notaries public, each of the notaries public concerned shall be held as competent.

An agreement that is not concluded in the manner referred to in paras. 1 through 3 of this Article shall not produce a legal effect.

Article 4а

In case a notary public, on the basis of his insight into the register of immovable property or in some other manner, identifies that the subject of the immovable property transfer agreement is a facility or a separate part of a building for which an occupancy permit has not been issued or in respect of which a legalization procedure is in progress, he shall warn the contracting parties thereof and to enter the warning thereof in accordance with the rules regulating notary public activity, and provided that the contracting parties oppose the entry of a warning, the notary public shall refuse to take the demanded official action.

Article 4b

In case a notary public, on the basis of his insight into separate records of immovable property transfer agreements, identifies that the signatures in the agreement on transfer of the same immovable property have already been certified in the court, that a notary public record on the transfer of the same immovable property has already been drawn up at a notary public office or in the court, i.e. that the agreement on transfer of the same immovable property has already been verified (solemnized) at a notary public office, and a seller is the same person, the notary public shall warn the contracting parties thereof and to enter the warning thereof in accordance with the rules regulating notary public activity, and provided that the contracting parties oppose the entry of the warning, the notary public shall refuse to take the demanded official action.

Article 4c

A notary public who has verified (solemnized) an immovable property transfer agreement shall immediately deliver a certified transcript of the agreement concerned to the court competent for keeping separate records of immovable property transfer agreements.

A notary public who has verified (solemnized) an immovable property transfer agreement shall deliver a certified transcript of the agreement concerned to the authority competent for determining and collecting public revenues within a time limit of ten days from the date of the agreement conclusion.

Article 4d

A basic court shall keep separate records of the agreements on transfer of the immovable properties that are located in the territory of its jurisdiction. The separate records shall contain: data on the contracting parties, data on the immovable property and data on a notary public record of the immovable property transfer agreement or data on the immovable property transfer agreements that have been verified (solemnized) by notaries public. Each and every notary public shall have the right to inspect the separate records concerned.

The regulation governing in more detail the keeping of the separate records referred to in paragraph 1 of this Article shall be passed by the minister responsible for justice.

II PREEMPTIVE RIGHT

Article 5

An immovable property co-owner who intends to sell his co-ownership share shall previously offer it for sale to other co-owners.

In case where there are a number of co-owners, priority in exercising a preemptive right shall be given to the co-owner holding a larger co-ownership share.

Where there are a number of co-owners who would, according to paragraph 2 of this Article, have a preemptive right, the immovable property co-owner shall be entitled to decide on his own to whom of the co-owners concerned he shall sell his share of the immovable property.

Article 6

The owner who intends to sell agricultural land shall previously offer it to the owner of the neighboring agricultural land.

In case where there are a number of owners of the neighboring land whose agricultural land borders with the agricultural land of the seller, priority in exercising a preemptive right shall be given to the owner of the neighboring land whose agricultural land, in its predominant part, borders with the seller’s land. In case where there are a number of owners of the neighboring land whose agricultural land, in its predominant part, borders with the seller’s land, and the boundary lines are equal, priority among them shall be given to the owner of the neighboring land whose area is the largest.

In exercising a preemptive right, the owner of the neighboring land shall be next in order behind the co-owner of the land that is the subject of sale.

Article 7

The offer referred to in Articles 5 and 6 of this Law, which is to be delivered to all holders of a preemptive right at the same time, must contain data on immovable property, price and other conditions of sale.

The offer must be in writing.

The holder of a preemptive right shall make a written statement about the offer within a time limit of 15 days from the date of receipt of the offer.

The offer and the statement on offer acceptance referred to in paras. 1 and 3 of this Article must be made by a registered letter.

Article 8

If the holder of a preemptive right, to whom the offer has been made, does not state that he accepts the offer in the manner referred to in Article 7, paragraph 3 of this Law within a time limit of 15 days from the offer receipt date, the seller may sell the immovable property to another person, but not under more favorable conditions.

Article 9

If the holder of a preemptive right does not accept the offer, and the owner does not sell the immovable property to a third party within one year from the date of the offer non-acceptance, he shall act in accordance with the provisions of Articles 5 through 7 of this Law in case of repeated sale.

Article 10

If the seller has sold the immovable property without previously offering it to the holder of a preemptive right, or has sold the immovable property under the conditions more favorable than the conditions stated in the offer, the holder of a preemptive right may request in a lawsuit that the agreement on sale of immovable property be declared without having an effect on him and that the immovable property be sold and handed over to him under the same conditions.

The lawsuit referred to in paragraph 1 of this Article may be initiated at the competent court within a time limit of 30 days from the date when the holder of a preemptive right learnt of the sale of such immovable property, and within two years from the date of conclusion of the agreement on sale of immovable property at the latest.

If the agreement on sale of immovable property is not concluded in the form prescribed by this Law, and the immovable property is handed over to the purchaser’s possession, it shall be considered that a preemptive right has been violated in that manner, and the person entitled to the right concerned may file a lawsuit demanding the right concerned to be exercised.

The lawsuit referred to in paragraph 3 of this Article may be filed with the competent court within a time limit of one year from the date of learning about the transfer of possession, and within two years from the date of transferring the immovable property into the purchaser’s possession at the latest.

Simultaneously with the filing of the lawsuit referred to in paras. 1 and 3 of this Article, the claimant shall deposit a sum in the amount of the immovable property market value valid on the date of filing of the lawsuit with the competent court.

III SPECIAL PROVISIONS

Article 11

Null and void shall be an immovable property transfer agreement concluded under the conditions of existing pressure and violence, i.e. in the conditions and circumstances in which the safety of people and property, exercise of the protection of freedoms, rights and duties of citizens, or legality and equality of citizens have been jeopardized or have not been ensured.

Article 12

Immovable property in public ownership may be alienated in accordance with the law regulating public property, unless otherwise provided by a special law.

Agricultural and building land, forests and forest land, as well as port land cannot be alienated from public property, unless otherwise provided by law.

Article 13

An immovable property owner may waive his ownership right to the immovable property in favor of the Republic of Serbia, autonomous province, i.e. a local self-government unit by means of a unilateral statement.

The waiver statement, within the meaning of paragraph 1 of this Article, shall be given in the form of a notary public verified (solemnized) document and shall serve as a basis for entry into a public register recording immovable property and rights thereto.

Prior to signing the waiver statement, the waiving party shall be required to submit an excerpt from the public register which records immovable property and rights thereto, i.e. other appropriate legal instrument on the basis of which it can be determined that he is the owner of the immovable property.

A notary public shall, within 15 days, deliver the signed statement, along with the enclosed documents, to the Republic Directorate for the Property of the Republic of Serbia, i.e. to the competent authority of the autonomous province or a local self-government unit for the purpose of initiating the procedure for registering the right and determining the manner of using the immovable property concerned.

Article 14

A notary public who verifies (solemnizes) an agreement on alienation of immovable property from public ownership shall deliver a copy of the agreement to the competent state attorney within a time limit of 15 days from the date of the agreement verification.

If an immovable property transfer agreement is concluded contrary to the provisions of this Law, the law regulating public property or other law, the competent state attorney shall file a lawsuit for annulment of the agreement within a time limit of six months from the date of the agreement delivery, and within three years from the date of the agreement verification (solemnization) at the latest.

IV PENAL PROVISIONS

Article 15

A fine in the amount of RSD 50,000 up to RSD 150,000 shall be imposed for a misdemeanor against a notary public who:

1) Fails to deliver a certified transcript of the immovable property transfer agreement to the competent authority in accordance with Article 4c of this Law;

2) Fails to deliver a signed statement, along with the enclosed documents, to the Republic Directorate for the Property of the Republic of Serbia, i.e. to the competent authority of the autonomous province or a local self-government unit in accordance with Article 13, paragraph 4 of this Law;

3) Fails to deliver a copy of the agreement to the competent state attorney in accordance with Article 14, paragraph 1 of this Law.

V TRANSITIONAL AND FINAL PROVISIONS

Article 16

A basic court shall carry out the activities related to verification (solemnization) of an immovable property transfer agreement in accordance with the provisions of this Law and the law regulating notary public activity in the territory of such basic court for which notaries public have not been appointed, until the appointment of a notary public with an official seat in the territory of such basic court.

Should a notary public be appointed in the territory of a basic court with an official seat outside the basic court’s seat, the basic court shall be competent for the activities related to verification (solemnization) of an immovable property transfer agreement, solely for the territory of a city or municipality where an official seat of the appointed notary public is not located, until the appointment of a notary public with an official seat within the basic court’s seat.

Courts shall enable the notary public to inspect the separate records of immovable property transfer agreements that are submitted for the purpose of certifying the contracting parties’ signatures, which have been kept by courts until the date of entry into force of this Law in accordance with the Rulebook on Keeping of Separate Records of Immovable Property Transfer Agreements (“Official Herald of the RS”, number 4/10).

Article 17

The Law on Transfer of Immovable Property (“Official Herald of the RS”, No. 42/98 and 111/09) and the Rulebook on Keeping of Separate Records of Immovable Property Transfer Agreements (“Official Herald of the RS”, number 4/10) shall cease to be valid on the date of entry into force of this Law.

Article 18

This Law shall enter into force on 1 September, 2014.

Independent Article of the Law on Amendments and Additions to the Law on Transfer of Immovable Property

(“Off. Herald of the RS”, No. 121/2014)

Article 6

This Law shall enter into force on the day following the date of its publication in the “Official Herald of the Republic of Serbia”.